Navistar Closing Garland Truck Plant, 900 Jobs Eliminated
Illinois-based Navistar says its Garland facility will cease operations by the first half of 2013.
The company on Tuesday cited the planned closure as part of efforts to save money and optimize its manufacturing operations. Navistar anticipates annual cost savings of up to $35 million with the closure.
President Troy Clarke says Navistar has too much manufacturing capacity in North America.
Navistar and its affiliates make International-brand trucks, diesel engines, buses and recreational vehicles.
Garland is the next town over from Rowlett and we share a lot of commonality, the loss of 900 jobs from this immediate area is going to have a substantial impact on the local economy I am sure.
I don’t blame Navistar, they are a business and they are IN business to make money, that is first and foremost, and as terrible as it is to say, Navistar bears no responsibility to keep ANY plant in operation in ANY location, they are not obligated to give anyone a job. That is a fact of business.
Now, here is a fact that can’t be disputed; the U.S. economy is NOT where it needs to be, it is NOT as strong as the Obama administration would like you to believe and it will not BE as strong as it was a few years ago, not for quite some time actually.
I don’t want to sound negative but trucks and the trucking industry is something I have a bit of experience with and have an idea of how it runs and what it takes to be successful.
My wife and I spent several years as Owner/Operators with a major Van Line and we were quite successful too, but a few years ago things began to change in the trucking industry, and I have to say, it was NOT the fault of Barack Obama, it was before his time.
The cost of everything went UP, dramatically! The price of trucks, oil, diesel fuel, tires, repairs, ALL of it, the prices went up, everything that is except the wages drivers were paid and the compensation Owner/Operators received.
We were hauling the same freight for less money and we were told it was *the economy* and that we were just going to have to suck it up, tighten our belts, make do, get by with less and basically, just live with it.
When we began running for the Van Line you could buy a relatively well equipped rig for $80-$90K, the last truck we bought was priced at $141K delivered and rigged out, ready to go to work. That was in back in 2000 and not too long after that I had to get out of the business and take full retirement due to serious and irreparable health issues.
The costs associated with trucking have continued to rise over the last 10 years that have passed since I’ve been retired, but as said, the compensation to the drivers and Owners hasn’t done much, if anything, in the way of improving.
If truckers and trucking companies can’t operate at a profit they can’t continue to stay in business, it would be foolish to expect them to, and as such, if truckers can’t make a living truck manufacturers can’t sell the trucks they build.
Now I am going to tell you something you may not have realized; if you have it, a truck brought it to you at some point in the transportation chain. It’s an old cliche in the trucking business but it’s the truth: without trucks America stops!
Once again it all comes down to the economy, so, ask yourself this; who do YOU believe will have the most success getting the American economy fired back up and getting the American people back to work and on the job?
Vote like your LIFE depends on it … because it does!